[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR32.304-1]



[Page 661]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 32_CONTRACT FINANCING--Table of Contents

 

           Subpart 32.3_Loan Guarantees for Defense Production

 

Sec. 32.304-1  Application for guarantee.



    (a) A contractor, subcontractor, or supplier that needs operating 

funds to perform a contract related to national defense may apply to a 

financing institution for a loan. If the financing institution is 

willing to extend credit, but considers a Government guarantee 

necessary, the institution may apply to the Federal Reserve Bank of its 

district for the guarantee. Application forms and guidance are available 

at all Federal Reserve Banks.

    (b) The Federal Reserve Bank will promptly send a copy of the 

application, including a list of the relevant defense contracts held by 

the contractor, to the Federal Reserve Board. The Board will transmit 

the application and the list of contracts to the interested guaranteeing 

agency, so that the agency can determine the eligibility of the 

contractor.

    (c) To expedite the process, the Federal Reserve Bank may, pursuant 

to instructions of a guaranteeing agency, submit lists of the defense 

contracts to the interested contracting officers.

    (d) While eligibility is being determined, the Federal Reserve Bank 

will make any necessary credit investigations to supplement the 

information furnished by the applicant financing institution in order 

to--

    (1) Expedite necessary defense financing; and

    (2) Protect the Government against monetary loss.

    (e) The Federal Reserve Bank will send its report and recommendation 

to the Federal Reserve Board. The Board will transmit them to the 

interested guaranteeing agency.